Hundreds of hotel establishments in Angola are in technical bankruptcy

23 May 2017

More than 500 hotel establishments in Angola are in a state of technical bankruptcy, and the businesses may close in the short term, according to data from the Association of Hotels and Resorts of Angola (AHARA), quoted by Angolan newspaper Expansão.

A document prepared by the association said that the figure represents about 17% of a total of around 3,000 companies registered in the sector and added that the current economic situation of the country “is throwing several companies in the hotel and tourism sector into bankruptcy, leading to the dismissal of thousands of professionals.”

The main cause, according to AHARA, is the near-shutdown of the economy that has provided very low occupancy rates, a daily average of 20%, a situation that they consider “catastrophic” for investors.

The secretary general of the Association of Hotels and Resorts of Angola, Ramiro Barreira, last April recommended hotel owners establish prices that are in line with people’s purchasing power in order to increase occupancy rates.

Barreira pointed out that hotel establishments in some of the country’s provinces have occupancy rates ranging from 5.0% to 15%, and that measures should be taken to increase this rate to at least 50%. (macauhub)